What is Visibility in construction?
It is the stakeholder’s ability to get an insight into the day-to-day operations of the construction workflow cycle. An overview of critical data of the project and the company is vital for successfully executing any construction project within the allocated budget and time frame. Lack of clarity in the operations workflow results in the tasks coming to a grinding halt while at the same time increasing the overhead costs exponentially.
It is also important to keep in mind that visibility has to be maintained around the clock in real-time through which the key stakeholders like the Regional Heads, Project managers and Quantity surveyors can know the status of work done instantaneously like for eg:
- Overview of the region’s projects and material availability
- Monitor and track Change Requests & scope revision from clients – and approval status
- Track plan vs actual status of Projects – monthly billing target of a project vs completion
- Plan material, Manpower, Stock, Equipment and Subcontracting requirements for each project
- View unbilled activities and Receivables status from each client
- Track critical issues raised, Constraints, Client queries to be addressed for each project
- Monitor utilisation of Post Dated Cheques, Bank Guarantees Limits and Insurance coverage
What is Control?
Regarding the construction industry, the word ‘control’ denotes the ability of the contractors to seamlessly manage and integrate the construction operations and the workforce with the laid out plan and schedules. Like visibility, control and coordination have to be in real-time to achieve maximum efficiency by reducing the time lag between identification of issues and acting upon the same to resolve it. Effective control over the construction operations helps contractors to act efficiently and promptly to derive managerial conclusions with ease.
Benefits of having a sound control system
- The budget can be controlled and adjusted as per the financial condition and other key priorities of the contractor
- Corrective and preventive maintenance of equipment and machinery can be initiated with ease
- Workforce progress can be modified by either speeding up the execution of tasks or by allocating or delegating work to different departments within the organization
- Pilferages can be minimised by employing cost control methods like the Lean principles
- Overhead cost can be effectively curtailed by enabling timely executions of scheduled tasks.
What is the role of construction ERP software in enhancing visibility and control over construction operations?
The role of construction management software is to streamline, simplify, and standardise the construction operations across the organization to achieve maximum ROI. Construction ERP software helps contractors seamlessly manage and integrate all the components of construction operations and the workforce under a single unified digital platform. The construction management software is a mobile and cloud based platform that promotes 24/7 real-time visibility and control over all construction operations and the workforce across multiple projects including those that are functioning across geographies.
The multitudinal benefits of a construction ERP software are:
- Boost project success by managing all your construction operations in a singleplatform
- Digitize the process of building projects for enhanced operational efficiency and transparency
- Project cost control with single settings
- Effective stock management and procurement processes
- Integrated and automated document management system to go paperless and error free
- Tender management process with ease
- Track and manage the labor cost outrun
- MIS dashboards and construction project analytics tool powered with BI (business intelligence)
- Automated JCR (job cost report) to know the financial performance of a specific project in live
- Ontime resource reconciliation
- Equipment Maintenance Management and tracking of asset and material movement
- Effective vendor management
The construction industry is changing faster than ever with digitalisation and technical advancements. McKinsey research says that companies that get on with the digitisation wave will be able to complete projects with profit even in the thin margin industry.
Tactive, Construction ERP Software by experts in the construction domain, is a powerful mobile and cloud based platform that gives 24×7 real-time visibility and control over all your construction projects from anywhere.
- Monitor project-wise up to date profitability and budget variance via Job cost Reports
- Identify and Analyse LMP shortfalls during the project tenure
- View stock status and Asset utilisation across the entire company
- Plan the cash flow based on the payables and receivables
- A complete overview of the project status through the management Dashboard
Module wise Key benefits:
Tender Management – Generate multiple proposals against each enquiry with internal cost workings & margins
Budget Scheduling – Plan LMP cost for every individual BOQs and manage indirect cost.
Project Management – Set limits to labour & subcontractor rate and quantity as per the budget. Do reconciliation for all your client and vendor invoices.
Procurement & Inventory – Manage slow & fast-moving stocks with multiple warehouses.
Equipment Management – Monitor machinery wise productivity, diesel consumption, idle hours and preventive & corrective maintenance protocols
Finance & Accounting – The balance sheet is generated whenever required by collecting inputs from all the other modules.
Tactive can auto-generate 120+ reports that provide clarity on various slippages in project schedules, cost overruns, pilferages in the utilization of resources.
CHECK OUT THE FREE DEMO Construction ERP Software to find if it’s a good fit for your company. Please feel free to call me on +91 72006 45007 and I will be happy to explain further.